Digital River, Inc. (DRIV - $21.93) is a high-ranked leader in the group of Internet-Network Solutions stocks, of which there are other leaders showing confirming strength including Packeteer Inc (PKTR). The volume dried up in the final few weeks of its latest base while it approached but stayed above its 50-day moving average line. The weekly chart also is worth a look, as the latest high-volume breakout helped it to clear important previous highs in the $20 range that were a resistance barrier for it in 2001 and 2002. Drawing an upward trendline along the lows of recent months gives you at least one technical point to watch for support of the latest uptrend.
Although the stock may be slightly passed its pivot or an ideal buy point at this time, investors should recognize that today is an indication of institution buying. It could be a wise one to consider purchasing on any pullbacks on lighter volume or on normal weakness provided that it's not a high volume failure down into the previous base.
Shares Outstanding - 28.3 Mil | 50-Day Avg Vol - 1,259,000 | Prior 2 Quarterly earnings % Change: +275%;+750%
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